HomeMy WebLinkAboutR-93-0534J-93-572
8/16/93
W
N
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AMENDMENT TO THE APPLICATION FOR A
COMMUNITY DISASTER LOAN FROM THE FEDERAL
EMERGENCY MANAGEMENT AGENCY (FEMA) IN AN
ADDITIONAL AMOUNT OF $5,000,000; FURTHER
AUTHORIZING THE CITY MANAGER TO EXECUTE THE
PROMISSORY NOTE RESULTING FROM THE
APPLICATION, AS AMENDED.
WHEREAS, the City of Miami has lost revenues, as a result of
damages caused by Hurricane Andrew; and
WHEREAS, federal regulations authorize the president to make
Community Disaster Loans to any local government which has
suffered loss of revenues as a result of a major disaster; and
WHEREAS, federal regulations allow the Associate Director,
State and Local Programs and Support (the Associate Director) to
cancel repayment of all or part of a Community Disaster Loan to
the extent that he/she determines that revenues of the local
government during the three (3) fiscal years following the
disaster are insufficient to meet the operating budget of that
local government because of disaster -related revenue losses and
additional unreimbursed disaster -related municipal operating
expenses.
CITY COM.USSION
MEETING OF
Resolution No.
�-- *4
WHEREAS, City Commission Resolution No. 92-622, adopted
October 8, 1992, authorized the City Manager to apply for a
Community Disaster Loan in an amount not to exceed $5,000,000;
and
WHEREAS, the City has experienced additional revenue losses
affecting the upcoming fiscal years 93-94 and 94-95 in an amount
estimated at $5,000,000;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorized to
execute an amendment to the application for a Community Disaster
Loan from the Federal Emergency Management Agency (FEMA) in an
additional amount of $5,000,000, and to execute the Promissory
Note resulting from the application, as amended.
Section 3. The interest rate on said loan shall be at
the rate for five (5) year maturities, as determined by the
Secretary to the United States Treasury, in effect on the date
that the Promissory Note is executed.
Section 4. The term of the loan is five (5) years,
unless otherwise extended by the Associate Director if requested
by the Commission of the City of Miami.
Section 5. This Resolution shall become effective
immediately upon its adoption.
93- 534
-2-
, CITY OF MIAMt, FLORIDA 10
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members
of the City Commission
FROM
Cesa io
City ger
COMMENDATIO
DATE AUG 2 6 1 3 FILE .
SUBJECT
Agenda Item -
App].ication for Community
REFERENCES Disaster Loan
ENCLOSURES.
It is respectfully recommended that the attached resolution be
approved authorizing the City Manager to amend the application
for a Community Disaster Loan from the Federal Management Agency
in an additional amount of $5,000,000.
BACKGROUND:
Federal regulations provide for Community Disaster Loans to any
local government which has suffered loss of revenues as a result
of a major disaster. The City Administration originally
projected the loss of revenue as a result of damages caused by
Hurricane Andrew at $5,000,000. This estimate included revenue
losses suffered by City facilities, such as marinas and
conference centers, reductions in franchise taxes, public service
taxes, sales taxes and other revenues. Additional revenue losses
are being projected for fiscal years 93-94 and 94-95 'that may be
related to Hurricane Andrew.
The law allows for cancellation of the loan once the City
presents proof to the federal government that the loan was used
to offset losses in revenues attributable to Hurricane Andrew or
to pay for unreimbursed disaster -related expenses during the
three fiscal year period following the disaster.
The enclosed resolution authorizes the City Manager to amend the
application for a FEMA loan in the additional amount of $5
million.